Effects Of The Affordable Care Act

781 Words Feb 8th, 2016 4 Pages
RESEARCH SYNOPSIS (THE EFFECTS OF THE AFFORDABLE CARE ACT) As a result of the Patient Protection and Affordable Care Act (PPAPC), organizations have changed their policies to cap the number of hours some of their employees work per week at 29. According to an April 2013survey conducted by the Society for Human Resource Management, 41% of small business owners said they have delayed hiring due to the federal healthcare law. One in five employers has already cut hours, while 20% have reduced payrolls. Could employers be making an error by possibly looking only at short-term rather than long-term goals? Research shows that employees who do not feel that they are paid enough or lose something due to no fault of their own have lower levels of commitment. As a result, these employees tend to display low morale, lower production output, and eventually tend to look for other employment. Investor 's Business Daily (IBD) has compiled a list of organizations that have reduced employees’ hours, eliminated jobs, or taken other steps to avoid the costs of PPACA implementation. The list to date includes 258 organizations. Other companies have also trimmed the number of full-time staff to below 50 workers to avoid PPACA’s full-time-equivalent worker rule. This mandate requires organizations to provide health insurance to their employees if they have 50 or more full-time employees or full-time employee equivalent. A full-time equivalent is a combination of…
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